Is the arbitrator allowed to modify the terms of the Coffee News franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for obtaining injunctive relief by either party against actual or threatened conduct that would cause irreparable harm to that party, all controversies, disputes or claims arising under this Agreement between Franchisor and Franchisee shall be submitted for arbitration to the Office of the American Arbitration Association nearest to Franchisor on demand of either Franchisor or Franchisee.
Such arbitration proceedings shall be conducted in Bangor, Maine.
Except as otherwise provided in this Agreement, such claims shall be heard by one arbitrator in accordance with the then Current Commercial Arbitration Rules of the American Arbitration The administrative cost of the arbitration, including the cost of the Association. arbitrator, shall be borne equally by the parties.
Each party shall be responsible for the payment of its own attorneys' fees and expenses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, controversies, disputes, or claims arising under the Franchise Agreement between the franchisor and franchisee will be submitted for arbitration to the American Arbitration Association office nearest to the franchisor, if either party demands it. The arbitration proceedings will be conducted in Bangor, Maine, by one arbitrator, following the Commercial Arbitration Rules of the American Arbitration Association. The administrative costs of arbitration, including the arbitrator's cost, will be equally shared by both parties, and each party is responsible for their own attorney's fees and expenses.
However, the FDD does not explicitly state whether the arbitrator has the authority to modify the terms of the Coffee News franchise agreement. The document outlines the process for arbitration and the allocation of costs, but it remains silent on the arbitrator's power to alter the agreement itself.
Therefore, prospective Coffee News franchisees should seek clarification from the franchisor regarding the arbitrator's ability to modify the franchise agreement's terms during arbitration. Understanding the scope of the arbitrator's powers is crucial for assessing the potential outcomes of any dispute resolution process.